Succession Planning

Would you want to purchase their share in the business to keep control rather than an outsider coming in? How would you feel if their family decided they would not sell their share? Can you negotiate a fair price based on the current value of the business, now that your partner / shareholder is unable to contribute to the running of the business? Where would you get the money to buy their share? Would your bank extend your credit?

These are all questions you will have to ask yourself should this happen to your business and you do not have a structured Business Succession Risk Protection Plan.

Put simply this plan includes an agreement that ensures the ownership of the business / shareholding changes without interference and that funding is in place to pay the agreed price to the departed partners / shareholders' family / estate. The benefits are the smooth transition of ownership with the least disruption to the running of the business, its staff, customers and creditors. It also ensures each partners / shareholders' family receives payment that recognises the effort and achievement of building the business over many years.

Also, what happens if a Partner/Shareholder retires or wishes to exit the business early? What provisions are in place to ensure funding will be available to enable the remaining partners/shareholders to purchase the partner's shares in the business.

1. The funding mechanism
2. The 'Buy/Sell' agreement to ensure the transfer of ownership as agreed.

We have strong working relationships with Lawyers who specialise in this area to assist our clients. Please note our referral partners are not authorised to provide advice under the Aon Hewitt Advice Limited Australian Financial Services License.

Blackmore Honeychurch are specialists in making sure that ownership of the Business transitions smoothly on the exit of a Partner, Shareholder in the event of Death Retirement, Disablement.

Tel (within Australia): 08 8221 6515 Tel (international): +61 8 8221 6515